Post by Rams GM (Frank) on Feb 11, 2022 0:32:53 GMT -5
Should Legacy NFL Add a Second Contract Options
The current rule reads as follows:
Contract Buyout
The current rule reads as follows:
Contract Buyout
As an added option to the standard 30% cap hit for the duration of a contract for a player that is waived and not claimed, we have contract buyout. The contract buyout rates are on a fixed percentage based on how many years are remaining on a players contract. The contract buyout rates are as follows:
2 years left on contract 60%
3 years left on contract 75%
4 years left on contract 90%
The contract buyout will be based on the average salary remaining on the duration of the contract, and the proper rate will be applied based on how many years remain.
Example #1:
Justin Forsett (RB-DE) 4/4/UFA
The average contract price for the remaining two years is 4M a year, thus the 60% buyout rate applies. A 2 year 4M average contract price buyout at 60% would be 2.4M
Example #2
Ezekiel Elliot (RB-DAL) 3/3/3/3/UFA
The average contract price for the remaining 4 years is 3M a year, thus the 90% buyout rate applies. A 4 year 3M average contract price buyout at 90% would be 2.7
This buyout will only happen during the offseason, when other league duties are due such as franchise tags, contract extensions and contract restructures. Once the deadline for contract buyouts expires, no organization will be allowed to use that contract buyout until the following offseason. Thus, we will never have a contract buyout in the middle of the season, creating a free agency crisis in the midst of a playoff race. There will be only one contract buyout per season.
Once a contract buyout has taken place, the team buying out the contract cannot bid on that player once he heads into free agency until the following offseason.
2 years left on contract 60%
3 years left on contract 75%
4 years left on contract 90%
The contract buyout will be based on the average salary remaining on the duration of the contract, and the proper rate will be applied based on how many years remain.
Example #1:
Justin Forsett (RB-DE) 4/4/UFA
The average contract price for the remaining two years is 4M a year, thus the 60% buyout rate applies. A 2 year 4M average contract price buyout at 60% would be 2.4M
Example #2
Ezekiel Elliot (RB-DAL) 3/3/3/3/UFA
The average contract price for the remaining 4 years is 3M a year, thus the 90% buyout rate applies. A 4 year 3M average contract price buyout at 90% would be 2.7
This buyout will only happen during the offseason, when other league duties are due such as franchise tags, contract extensions and contract restructures. Once the deadline for contract buyouts expires, no organization will be allowed to use that contract buyout until the following offseason. Thus, we will never have a contract buyout in the middle of the season, creating a free agency crisis in the midst of a playoff race. There will be only one contract buyout per season.
Once a contract buyout has taken place, the team buying out the contract cannot bid on that player once he heads into free agency until the following offseason.
